The world’s second-largest economy shrank 3.3 percent from the third quarter, today’s report showed. That compared with the U.S.’s 1 percent contraction and the euro-zone’s 1.5 percent decline, which was the sharpest in at least 13 years.

“There’s no doubt that the economy is in its worst state in the postwar period,” Economic and Fiscal Policy Minister Kaoru Yosano said in Tokyo. “The Japanese economy, which is heavily dependent on exports of autos, electronics and capital goods, has been severely hit by the global slowdown.”
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Capital investment fell 5.3 percent. Manufacturers cut production by a record 11.9 percent in the quarter, indicating they have little need to buy equipment as factories lay idle. Consumer spending, which accounts for more than half of the economy, dropped 0.4 percent, as exporters fired workers.
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The jobless rate surged to 4.4 percent in December from 3.9 percent, the biggest jump in four decades.

The decline is huge. Economies shrinking 2% is a large and fairly rare event. Shrinking over 10% is dramatically bad. The drop appears to be largely due to falling exports as consumer spending only dropped by .4 percent. Since 1930 the US economy has only fallen over 10% in a year 1932 and 1946. And real GDP has fallen over 2% only 5 times, the most recent time close to that large a fall was in 1982 with a 1.9% decline). Data from the United States Bureau of Economic Analysis. There is a good chance the US GDP will decline between 2-3% in 2009.

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The global economy took another turn for the worse as Japan plunged into recession following two consecutive quarters of growth.
Please consider Japan’s economy shrinks annualized 3.5%.
Japan’s economy shrank an annualised 3.5 per cent between July and September, the steepest decline since the earthquake-hit first quarter of 2011, as exporters suffered big falls in shipments to key markets such as China and Europe.

Inquiring minds investigating the collapse in Europe note Euro-Zone Industrial Production Declines Steeply
Industrial production in the 17 countries that use the euro fell sharply in September as weak output across both the core and peripheral economies added to expectations for a poor third quarter gross domestic product print Thursday.

Japan's 4th Quarter GDP Unexpectedly Contracts at 2.3% Annualized Rate
The Financial Times reports Japan’s GDP shrinks in fourth quarterFebruary 13, 2012
Japan’s economy shrank for the third time in four quarters between October and December, after floods in Thailand damaged production, and a strong yen and subdued overseas demand hurt exports.

NEW DELHI: India's economic growth likely picked up in the July-September quarter, outpacing China on improving domestic demand and manufacturing activity that could persuade the Reserve Bank of India to keep interest rates unchanged on Tuesday. Asia's third-largest economy likely expanded 7.3 per cent in the second quarter of the current financial year 2015/16 that ends in March, compared with 7 per cent in April-June, according to analysts polled by Reuters. The data will be released on Monday at around 1200 GMT.

Tokyo (AFP) - Japan's factory output contracted a worse-than-expected 0.6 percent on-month in July, official data showed on Monday, owing to lacklustre demand at home and as a slowdown in China weighs on exports.

Tokyo (AFP) - Japan's central bank on Wednesday cut its annual growth and inflation forecasts for the world's third-largest economy, with analysts warning weaknesses remained and the downgrade hinted at a disappointing second quarter.

Tokyo (AFP) - Japan's factory output fell by a less-than-expected 0.3 percent in March, data showed Thursday, but the still-weak statistics underscored an uncertain recovery in the world's number three economy.

This is an unprecedented degree of monetary easing
TOKYO — The Bank of Japan unleashed the world’s most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years, a radical gamble that sent the yen reeling and bond yields to record lows.

Revised estimates of Japan's growth have been cut in half, from 1.4% to .7%. More importantly, Japan has a small but shrinking current account surplus (in spite of running a trade deficit for some time).
Once the current account surplus vanishes, and I believe it will, Japan will become somewhat dependent on foreigners to handle its budget deficit. Good luck with that at 0% interest rates.